Please Help: Holding Company

Posted Date : 28-Jun-2012 , 04:20:31 pm | Posted By Surendra Kumar Dash

Dear Friends, Can you tell me what is the treatment in preparing CFS if a holding company transfers stock to subsidiary company at transfer price and vice-verse ?

Category : Accounts | Answers : 1 | Comments : 1 | Hits : 211

Answers

Answer By: Krishna Chandra Santi

The difference between transfer price and cost will be termed as unrealized profit or loss. It will effect in the cash flow if the statement is prepared under direct method.